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Cane Company manufactures two products called Alpha and Beta that sell for $225 and $175, respectively. Each product uses only one type of raw material

Cane Company manufactures two products called Alpha and Beta that sell for $225 and $175, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 130,000 units of each product. Its average cost per unit for each product at this level of activity are given below: AlphaBeta Direct materials$ 42 $ 24 Direct labor42 32 Variable manufacturing overhead26 24 Traceable fixed manufacturing overhead34 37 Variable selling expenses31 27 Common fixed expenses34 29 Total cost per unit$ 209 $ 173 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. 12. What contribution margin per pound of raw material is earned by each of the two products? (Round your answers to 2 decimal places.) 13. Assume that Canes customers would buy a maximum of 99,000 units of Alpha and 79,000 units of Beta. Also assume that the raw material available for production is limited to 344,000 pounds. How many units of each product should Cane produce to maximize its profits? 14. Assume that Canes customers would buy a maximum of 99,000 units of Alpha and 79,000 units of Beta. Also assume that the raw material available for production is limited to 344,000 pounds. What is the total contribution margin Cane Company will earn? 15. Assume that Canes customers would buy a maximum of 99,000 units of Alpha and 79,000 units of Beta. Also assume that the companys raw material available for production is limited to 344,000 pounds. If Cane uses its 344,000 pounds of raw materials, up to how much should it be willing to pay per pound for additional raw materials? (Round your answer to 2 decimal places.) Show work for all

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